LETTER: IPP aversion by Eskom is totally predictable given its monopoly position
THERE was so much in Matshela Koko’s article (Eskom backs IPPs but sees the glitches, July 26) to take issue with that one barely knows where to start. There are, however, a few things that are very important to understand.Firstly, it comes from an Eskom perspective and, as should be obvious, the interests of Eskom and its management are quite different from the public interest. Of course, that is true for any enterprise but it presents a problem for the country when Eskom, a vertically integrated state monopoly, is, in effect, also our whole electricity system.While some have expressed apparent shock over the Eskom turnabout on independent power producers (IPPs), this is entirely predictable given Eskom’s monopoly position. This set-up is increasingly rare in any forward-looking modern country. So, while it is true that IPPs (and not just renewable IPPs) are a problem for Eskom’s current business model, it is not true for the country — quite the opposite.The most recent renewable I...
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